#1Korea Zinc IR Presentation May 2023 TE#2Disclaimer This presentation contains forward looking information and statements with respect to market conditions, financial conditions, results of operations and business, and plans of the management. Please note they may differ from actual results. Financial results herein are under audit review, and therefore they are subject to change. This presentation has been prepared solely for the purpose of assisting investors in making investment decisions, and it may not be used as evidence of legal liability. The company does not make any direct/indirect representation or warranty as to the accuracy or completeness of the information contained in this presentation. Also, the company is entitled to revise or replace this presentation material at any time. The company shall not assume any liability for damage or loss that may have occurred from the use of this presentation. Any information contained herein may not be copied or disseminated or used for any other purpose without the consent of the company. 1#31Q 2023 Earnings Metal Prices & FX rates KZ Standalone Sorin Corporation Sun Metals Corporation Steel Cycle Company KZ Consolidated#4Metal Prices & FX rates KRW/USD (Avg.) 1,500 1,450 1,400 1,350 1,300 1,250 1,200 1,150 1,205 1,260 1,359 1,339 Zinc (USD/MT) 5,000 4,500 4,000 3,925 3,743 1,276 3,500 3,000 Lead (USD/MT) 2,600 2,500 2,400 2,334 2,300 2,203 2,200 I A. 2,099 2,141 2,100 2,000 1,976 3,269 3,130 1,900 3,003 1,800 1,700 1,100 2,500 1,600 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 KZ Consolidated Steelcycle SMC Sorin KZ Standalone Metal & FX Gold (USD/oz) 2,100 Silver (USD/oz) 28 Copper (USD/MT) 11,000 10,500 2,000 26 9,997 10,000 1,900 1,874 1,874 1,888 23.94 24 22.64 9,536 9,500 22.56 9,000 1,800 и 1,730 1 1,729 22 21.19 8,500 1,700 20 wy 19.22 8,000 8,934 n 7,767 A M 8,030 w 7,500 1,600 18 7,000 1,500 16 6,500 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 3#5KZ Consolidated Steelcycle SMC Sorin KZ Standalone Metal & FX 2,500 KZ Standalone Key Index Revenue by Product (bn KRW) 1Q22 2,164 2,052 2,048 172 2,000 1,817 158 214 70 1,815 86 67 240 Others 137 131 226 74 227 84 1,500 196 442 231 451 516 427 407 398 Silver 1,000 320 306 320 280 ■Lead 500 ■Zinc 811 842 662 718 681 Sales Volume Trend 1Q22 2Q22 ■Domestic Export 3Q22 4Q22 1Q23 2Q22 3Q22 4Q22 1Q23 Zinc(MT) Lead(MT) Silver(Kg) Gold(Kg) Copper(MT) 200,000 140,000 700,000 3,500 8,000 " 180,000 120,000 600,000 3,000 7,000 160,000 6,000 140,000 100,000 500,000 2,500 5,000 120,000 80,000 400,000 2,000 ☐ 100,000 4,000 60,000 300,000 1,500 80,000 3,000 60,000 40,000 40,000 20,000 200,000 100,000 1,000 2,000 500 1,000 20,000 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 ■Domestic Export I Domestic Export 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 Domestic Export Copper Gold " " " QoQ sales decreased as higher export volume of zinc, lead and gold from 4Q22 returns to normal levels (QoQ-16.2%, YoY -0.1%)) Zinc: Zinc price slightly increased whereas sales volume decreased due to the production in accordance with the business plan (QoQ-17.1%, YoY 6.8%) Lead Revenue decreased affected by temporary maintenance of its production line (QoQ -28.8%, YoY -11.3%) Silver Production volume decreased affected by lead production line temporal shutdown (QoQ-15.0%, YoY -8.2%) Gold Production volume decreased affected by lead production line temporal shutdown, WIP offset a bit of negative impact Copper Quarterly revenue increased thanks to 1Q22 2Q22 ■Domestic 3Q22 4Q22 1Q23 Export metal price and sales volume increase 4#6KZ Consolidated Steelcycle SMC Sorin KZ Standalone Metal & FX KZ Standalone P&L summary (bn KRW) Sales COGS SG&A 1Q22 2Q22 3Q22 4Q22 1Q23 QoQ YOY ■ Sales QoQ revenue decreased by lower sales volume and weaker KRW despite moderate increase of each metal price 1,817 2,052 2,048 2,164 1,815 -16.1% -0.1% 1,571 1,671 1,803 1,970 1,626 -17.5% 3.5% ☐ COGS 25 33 39 38 34 -9.8% 35.0% Operating profit 221 348 206 156 155 -0.9% -29.8% OPM(%) EBITDA 12.1% 17.0% 10.1% 7.2% 8.5% 1.3%p -3.6%p 278 386 198 219 239 9.2% -14.2% Total energy related cost decreased by maximizing LNG combined cycle power plant; declined LNG price lead smaller power consumption from KEPCO. (approx. -17bn KRW) Maintenance cost decreased as seasonal factors eliminated (approx. -15bn KRW) Net income 162 245 105 144 145 0.9% -10.6% ☐ Others . Net other income and finance income: 37 bn KRW . Corporate tax : 47 bn KRW LO 5#7KZ Consolidated Steelcycle SMC Sorin KZ Standalone Metal & FX KZ Standalone BS summary (bn KRW) 1Q22 2Q22 3Q22 4Q22 1Q23 QoQ YOY " Current assets Assets 8,256 8,580 9,566 10,091 9,761 -3.3% 18.2% . Payment of dividends: -400bn KRW Current assets 4,247 4,247 4,749 4,686 4,184 -10.7% -1.5% . Payment of corporate tax: -145bn KRW Cash and financial 1,744 1,725 2,397 2,437 1,725 -29.2% -1.1% instruments Inventories 2,503 2,520 2,352 2,247 2,453 9.2% -2.0% Non-current assets Non-current assets 4,009 4,334 4,817 5,405 5,577 3.2% 39.1% Liabilities 1,260 1,392 1,832 1,691 1,588 -6.1% 26.1% . Acquisition of new Investments in subsidiaries and gains on valuation of investment assets etc. : approx. +170bn KRW Current liabilities 1,185 1,338 1,777 1,676 1,561 -6.8% 31.7% Non-current liabilities 74 54 55 15 27 78.6% -63.4% ☐ Current Liabilities Shareholder's equity 6,997 7,189 7,733 8,400 8,173 -2.7% 16.8% . Payment of corporate tax: -145bn KRW CO 6#8Sorin Corporation P&L summary (bn KRW) Sales COGS Steelcycle SMC Sorin KZ Standalone Metal & FX KZ Consolidated SG&A 1Q22 2Q22 3Q22 4Q22 1Q23 QoQ YOY 674.4 684.0 549.6 527.5 495.5 -6.1% -26.5% ■ Sales 615.4 658.8 544.2 513.3 490.0 -4.5% -20.4% 9.3 8.9 12.6 9.9 8.9 -9.6% -3.9% Operating profit 49.7 16.3 -7.2 4.4 -3.5 -179.7% -107.0% OPM(%) 7.4% 2.4% -1.3% 0.8% -0.7% -1.5%p -8.1%p Net income -28.9 72.2 0.8 -1.5 -3.0 -94.9% 89.7% 1Q23 sales decreased by lunar new year holidays, headwind from ForEx rates and seasonal factors ■ COGS Change of inventory valuation of the previous year lead 1Q23 COGS increased (approx. 6 bn KRW added in 1Q23, decreased 4Q22 COGS respectively) 7#9KZ Consolidated Steelcycle SMC Sorin KZ Standalone Metal & FX Sun Metals Corporation P&L summary ('000 USD) Sales 1Q22 2Q22 3Q22 4Q22 1Q23 QoQ YOY 151,924 176,938 117,212 155,457 182,466 17.4% 20.1% ☐ Production COGS 143,389 160,318 141,978 168,893 157,649 -6.7% 9.9% SG&A 7,393 11,331 8,304 13,937 11,777 -15.5% 59.3% Production capability recovered and run at the normal operation Operating profit 1,142 5,289 -33,069 -27,370 13,039 147.6% 1041.7% ■ Sales OPM(%) 0.8% 3.0% -28.2% -17.6% 7.1% 24.8%p 6.4%p Net income 100 4,869 -24,276 -21,580 13,137 160.9% 13043.1% . Deferred sales of LGZC from 4Q22 contributed to revenue Production & sales volume recovered as operation recovered Operation Status 1Q22 2Q22 3Q22 4Q22 1Q23 QoQ YOY Zinc production (MT) 49,749 31,018 38,018 30,344 58,865 94.0% 18.3% Zinc sales (MT) 35,470 36,284 27,356 45,708 45,156 -1.2% 27.3% LGZC sales (MT) 17,292 38,097 29,740 17,148 50,690 195.6% 193.1% Operating profit SMC turned to profit as production recovered and inventory adjustment effects continued to alleviate Reduced burden from stabilized local electricity price 8#10Steel Cycle Company (Formerly Zinc Oxide Corporation) (bn KRW) Sales P&L summary 1Q22 2Q22 3Q22 4Q22 1Q23 QoQ YOY COGS Steelcycle SMC Sorin KZ Standalone Metal & FX KZ Consolidated SG&A ☐ Key changes Maintenance regarding environment and facility improvements for Suncheon plant(SCSC) in progress 31.0 24.3 23.1 25.4 21.0 -17.4% -32.4% ■ Sales 17.9 16.8 18.4 25.9 23.4 -9.4% 30.9% 0.6 0.7 0.8 2.6 1.4 -47.5% 120.6% Operating profit 12.4 6.8 4.0 -3.1 -3.9 -23.6% -131.2% OPM(%) 40.2% 27.9% 17.3% -12.4% -18.5% -6.1%p -58.7%p Sales and production decreased due to Suncheon plant (SCSC) maintenance Operating profit . Profitability decreased due to fixed burden from Suncheon plant idle Net income 10.5 14.1 7.1 5.8 -3.0 -151.7% -128.6% ☐ Others . Expect to improve profitability by sourcing overseas feedstock in mid 2023 9#11Steelcycle SMC Sorin KZ Standalone Metal & FX KZ Consolidated KZ Consolidated P&L summary (bn KRW) Sales 1Q22 2Q22 3Q22 4Q22 1Q23 QoQ YOY Sales . Sales decreased by headwind from sales volume and ForEx rate 2,661 2,851 2,744 2,962 2,527 -14.7% -5.0% COGS 2,333 2,414 2,520 2,784 2,313 -16.9% -0.8% COGS SG&A 44 56 74 75 69 -9.2% 56.1% . Decreased energy related cost and sales decrease effect contributed to COSG decrease Operating profit 285 381 151 103 146 42.0% -48.8% OPM(%) EBITDA 10.7% 13.4% 5.5% 3.5% 5.8% 2.3%p -4.9%p 277 387 287 222 263 18.6% -5.0% Net income 148 323 70 0 257 138 -46.1% -6.5% ☐ Operating profit . Despite production normalization of SMC, consolidated OP records 9bn KRW lower than standalone OP due to underperformance of subsidiaries such as Steelcycle and Pedalpoint . . Pedalpoint 1Q23 operating profit: -11bn KRW 10#12APPENDIX Metal Market Sales Volume Breakdown Sales Revenue Breakdown -#13Metal Market 2023 2024 Global (kt) K Zinc Mine Production 13,080 13,662 Refined Production 13,855 14,520 Consumption 13,794 14,309 Concentrate Market Balance 205 239 Metal Market Balance 61 211 Price Cash LME Price ($/t) 3,312 3,275 2023 2024 Global (kt) LEAD Lead Mine Production Refined Production 4,414 4,531 13,789 13,957 Consumption 13,803 13,929 Concentrate Balance 11 86 Refined Market Balance -14 28 Price Cash LME Price ($/t) 2,200 2,200 Silver 1102 * Source: Wood Mackenzie March, Fastmarkets, Korea zinc " Benchmark TC for zinc settled at $274/t, reaching second highest level since 2008 Total exchange stocks remain low at 136kt, equivalent of just four days of consumption, providing fundamental support to the zinc price (LME 39kt, SHFE 97kt) SHFE stocks fall from 124kt in early March to 97kt due to good demand and potential under performance of smelters in Yunnan owing to power disruptions " Stocks at the end of March remain low at 26.4kt for LME (35kt in Dec 2022) and 37.5kt for SHFE (55kt in Dec 2022) Global consumption is forecast to grow by 2.8% in 2023 with improved automotive supply chains driving global lead demand Globally, automotive sales were higher in Feb YoY while China volumes fell Combined volume of lead and silver concentrates imported in Jan-Feb rose by 41% YoY with both concentrates import volume increasing, deviating from usual trend of increase in one being offset by decrease of the other TC for high silver concentrates remain low with figures as low as $30/t in March 12#14Sales Volume Breakdown KZ Standalone 1Q22 2Q22 3Q22 4Q22 1Q23 QoQ YOY Zinc(MT) Domestic 57,379 53,717 49,429 43,804 46,190 5.4% -19.5% Export 89,090 100,030 96,099 144,866 110,282 -23.9% 23.8% Total 146,470 153,746 145,528 188,670 156,472 -17.1% 6.8% Lead(MT) Domestic 28,166 27,707 26,011 25,876 24,630 -4.8% -12.6% Export 72,350 69,916 73,099 99,338 64,487 -35.1% -10.9% Total 100,516 97,623 99,110 125,214 89,117 -28.8% -11.3% Silver(KG) Domestic 8,935 7,808 6,908 8,141 7,703 -5.4% -13.8% Export 469,512 460,692 566,398 508,428 431,604 -15.1% -8.1% Total 478,447 468,499 573,306 516,569 439,307 -15.0% -8.2% Gold(KG) Domestic 2,495 2,971 2,850 2,103 1,876 -10.8% -24.8% Export 200 200 1,080 1,100 1.9% 450.0% Total 2,695 2,971 3,050 3,183 2,976 -6.5% 10.4% Copper(MT) Domestic 5,753 6,501 5,923 5,494 6,301 14.7% 9.5% Export 397 601 514 924 1,045 13.1% 163.2% Total 6,150 7,103 6,436 6,418 7,346 14.5% 19.5% 13#15Sales Revenue Breakdown KZ Standalone (bW) 1Q22 2Q22 3Q22 4Q22 1Q23 QoQ YOY Zinc Domestic 260 282 237 196 203 3.5% -21.9% Export 402 529 481 644 478 -25.8% 19.1% Total 662 811 718 842 681 -19.0% 3.0% Lead Domestic 89 89 78 79 76 -4.5% -14.5% Export 231 231 228 319 204 -35.9% -11.7% Total 320 320 306 398 280 -29.7% -12.4% Silver Domestic 8 7 6 8 7 -14.1% -10.5% Export 419 443 510 435 399 -8.2% -4.8% Total 427 451 516 442 407 -8.1% -4.9% Gold Domestic 181 226 212 160 145 -9.5% -20.1% Export 15 0 16 80 87 8.6% 465.8% Total 196 226 227 240 231 -3.5% 17.9% Copper Domestic 69 79 62 59 72 21.3% 4.0% Export 5 7 6 11 12 13.7% 157.3% Total 74 86 67 70 84 20.2% 13.6% Others 137 158 214 172 131 -23.7% -4.3% 14#16KZ World's Leading Green Energy and Material Provider IR contact [email protected]